"Jack's Trading Classroom: Short Commentary on Potential Head and Shoulders Pattern in BTCUSD"
Original Jack's trading classroom "Short Review of Potential Head and Shoulders Pattern on BTCUSD"
Table of Contents
BTCUSD Potential Head and Shoulders Pattern Brief Commentary
Starting with a review of our previous analysis article, on April 1, 2020, we published a technical analysis titled "BTCUSD Potential Head and Shoulders Pattern Analysis." In that article, we mentioned, "If the neckline low of 5843.0 is breached and closed lower, there is downside potential for bearish operation."
Currently observing the four-hour candlestick chart of BTCUSD, the earlier high point of the right shoulder at 6634.0 has been surpassed, and the moving averages are currently crossing upwards with a widening gap, forming a typical bullish alignment. Therefore, patience is required to wait for the bottom to break through before entering short positions.
If the upper head at 6981.5 is breached, it is considered a pattern failure, and extra attention should be paid.
If the upper head at 6981.5 is surpassed, it indicates that BTCUSD has formed a higher high in the four-hour cycle, establishing an upward trend. If the upward trend is established, continue to operate with long positions in the trend.
Upper resistance levels
R1 6627.5
R2 7190.0
R3 8089.0
R4 9419.0
Lower support levels
S1 6436.0
S2 5898.5
S3 5388.5
S4 3832.5
In recent days, the cryptocurrency market has experienced significant fluctuations. It is recommended that operators strictly implement risk control and avoid high leverage and high contract volumes to prevent additional losses caused by volatile market conditions. This article reflects personal opinions. Readers should exercise caution and virtual currency trading may pose risks to your capital.
WeChat Official Account: Jack's Trading Room
Personal Website: jackbtc.io
Further Reading
"Jack's Trading Room" BTCUSD Potential Head and Shoulders Pattern Analysis
"Jack's Trading Room" BTCUSD Mid-term Long and Short Analysis
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